About Franchising/Essential Reading

Things you should know about franchising

If you’re a first time franchiser, you’ll find the information on this page essential, if you’ve been in franchising before, it could still be worth a quick scan to refresh your memory and bring you up to date with the latest franchising information.

What is franchising?

Franchising is not a business, but a way of doing business. Essentially it’s a marketing strategy - a way of distributing goods and services. It can be extremely successful and it’s a rapidly growing part of Australia's small business sector.

How does franchising work?

Franchising is a business relationship in which the franchisor (the owner of the business providing the product or service) gives independent people (the franchisees) the right to market and distribute the franchisor's goods or service, and to use their business name for a fixed period and agreed pricing structure.

Useful resources for franchisees (and franchisors)

Time spent reading through the information below will give you an idea of the questions to ask and what to expect as you go through the process of looking at franchise options. If you’re a franchisor, you should be prepared to answer questions and provide the information mentioned.

A checklist for new franchisees

Provided by Australian Consumer and Competition Commission (ACCC) downloading this checklist is a good starting point. Remember to answer it together with any potential business partners.